Academies adviser held over honours probe

Last updated at 16:02 13 April 2006

The investigation into the cash-for-honours row took a further turn today with the arrest of a former adviser to the Government's city academy programme.

Reports say 60-year-old Des Smith, who was a council member for of the Specialist Schools and Academies Trust, was arrested in Redbridge, London, by the Specialist Crime Directorate for an offence under the Honours (Prevention of Abuses) Act 1925.

Mr Smith resigned from his post earlier this year after revealing to the Sunday Times that he had promised wealthy individuals who agreed to make large donations to expand the programme would be rewarded with knighthoods and even peerages. However, he remained in his post as a headteacher in Dagenham.

An inquiry was originally launched in response to a complaint by Scottish and Welsh nationalist MPs that Labour had broken the law preventing the sale of honours such as peerages and knighthoods.

It has since been widened to cover the activities of other parties.

The investigation is being led by Deputy Assistant Commissioner John Yates, who has said he is prepared to widen the investigation to consider more general allegations of corruption.

It followed reports that the House of Lords Appointments Commission had blocked the appointment of four of Prime Minister Tony Blair's nominations for peerages - all wealthy businessmen who had made loans to Labour.

None were on the list of new working life peers when it was published on Monday.

One Tory nominee - who had loaned the party £2 million - also missed out on a seat in the upper house.

Mr Yates has already told MPs that he is prepared to widen the investigation to consider more general allegations of corruption.

Mr Smith quit as a member of the governing council of the Specialist Schools and Academies Trust (SSAT), the body that helps recruit sponsors for academies, after comments made to an undercover reporter were published by the Sunday Times in January.

He was an adviser to the Trust's chair Sir Cyril Taylor.

Apology

Afterwards Mr Smith, who is head of All Saints Catholic School and Technology College, apologised for his comments and admitted he was naive.

He told the reporter that large gifts to one or two of the schools might win an OBE, CBE or knighthood, while a peerage would be "a certainty" for giving to five.

Up to eight academy sponsors who have made gifts since the controversial programme to establish 200 academies was launched in 2001 have been honoured under Labour.

Academies are funded directly from Whitehall, bypassing local education authorities, and donors are given an input into their running in return for gifts usually amounting to about £2 million.

The Sunday Times reported that Mr Smith told a journalist posing as a potential donor's PR assistant that "the Prime Minister's office would recommend someone like (the donor) for an OBE, a CBE or a knighthood"'.

Asked if this would be just for getting involved in the academies, he responded: "'Yes ... they call them 'services to education'. I would say to Cyril's office that we've got to start writing to the Prime Minister's office."

For a donation of £10 million, "you could go to the House of Lords"', he said.

However, when confronted by the paper, Mr Smith responded that it was "not possible" to acquire an honour in return for donations.

And Sir Cyril told the paper: "In no way is giving money to the academy linked to the award of an honour."

Downing Street and the SSAT rejected the reports at the time as "nonsense".

Number 10 would not comment on today's arrest, saying it was "a matter for the Metropolitan Police".

Mr Smith's wife and son refused to talk to reporters at his home in Wanstead, east London, today.

Neighbours said the headteacher had left the house and got into a waiting car at around 8.30am, and had not returned since.

A spokesman for the London Borough of Barking and Dagenham said Mr Smith remained head at the school.

He said: "We are not aware of any issues with Mr Smith being head of a school in this authority and none have been suggested. He remains head of the school."

Labour MP Jon Cruddas, who represents Dagenham, said Mr Smith had worked hard to raise aspirations in the area.

"He's delivered the goods time and time again in quite challenging circumstances," he told Sky News.

"We have the best performing and developing schools in the country and we're very proud of that and we're very proud of the strong leadership that Des has provided."